News that some benefits are to be capped, as well as possibly amalgamated into one payment called a universal credit, filled me with alarm. It strikes me as odd, in this climate of severe cuts, that the Treasury is willing to gamble on an expensive new welfare system that has no real substance – where are the jobs that are allegedly out there, and what happens if you can't find one?

Iain Duncan Smith has said: "For the most vulnerable I say: we will protect you." Well, I hope so. But politicians have no idea at all what it's like to live on benefits. Let's just take a look at the facts of what it's really like to live on jobseeker's allowance in London.

I have a close friend who last August lost her council job working as a nursery nurse in a creche serving an adults' college. The creche was closed because of cutbacks, and with next to no savings, she is now trying to live on job seeker's allowance. She says she feels ashamed having to sign on every fortnight and always hopes no one sees her going into the jobcentre. She also finds it oppressive when she goes because some of the staff can be bullying and there are often raised voices in the "interview" rooms.

She gave me a breakdown of her weekly finances for the purpose of this article:

• JSA – £65.45

• Rent – £28 (after housing benefit of £115.25)

This leaves her with £37.45 a week. She sets aside money for her bills each week.

• £7 for electricity

• £1.30 for gas

• £7 for phone, television and broadband

All of which amounts to £15.30 per week. She is left with £22.15 for the week, out of which she has to buy food and other necessities. That works out at just over £3 a day to live on – and that sum would be lower if you're under 25.

My friend does her best to live within her means and not break into her bill money – she goes to the local fruit and vegetable market, which is just over half an hour's walk away. She times it so that she arrives just before closing time and if she's quick enough she can elbow out competition and grab bargains such as strawberries, tomatoes or even avocados at knockdown prices. There's also a good butcher's shop there, which always has a queue outside and sometimes she'll buy end cuts for stews and pies. At the fish stall she can buy a small mackerel for "next to nothing".

But my friend is constantly worried about being able to pay her bills. She has had no success yet at finding another job and as she is close to the official retirement age, she feels that her age might go against her. Most of all, she fears being out of work for over a year and having to deal with a further cut in income. This is because, under new budget proposals, those unfortunate enough to be on JSA for a year or over would receive a 10% cut to their housing benefit.

I did some calculations to work out how much she would have left to live on, if she ever found herself in that unfortunate position, and this is how it works out:

A 10% reduction in housing benefit would mean it would go down from £115.25 to £103.73. Weekly rent payable would hence rise from £28 to £39.52. Deduct £39.52 rent from £65.45 JSA and you are left with just £25.93 for the week with which to cover bills, food and other necessities. Get rid of phone, television and broadband at £7 per week and, if gas and electricity bills don't go up, monthly bills will be reduced to £8.30. That will leave £17.63 a week for food and other necessities – little more than £2 a day. My friend and thousands like her could very well be made homeless.

In comparison with its European counterparts, Britain's level of benefit has always been painfully low. In a table of comparisons of EU countries and their provision of unemployment benefit, Britain was at the bottom at €368.20 per month (£314.99), Luxembourg was at the top with €2,210 per month (£1,890.63).

The government should think deeply about these drastic welfare cuts, and those who will bear the brunt of them. Is it worth risking the destruction of the fabric of civilised society and risk a new era of social unrest? After all, when people have lost everything, what have they got to lose?